Magna International Inc. (MGA) has announced that its Powertrain operating unit has acquired ixetic Verwaltungs GmbH, a Germany-based manufacturer of automotive vacuum, engine and transmission pumps.
The acquisition of ixetic will likely expand the company’s footprint in Europe as well as in other global markets. The move will also help the company to strengthen its market position for vacuum and transmission oil pumps. Magna spent €308 million ($399.3 million) for the acquisition.
In 2006, the business of Schaeffler group’s LuK Fahrzeug-Hydraulik and LuK Automobil-Technik was acquired by Motion Equity Partners and was renamed as ixetic. Ixetic possesses a strong customer base with the European automakers and has manufacturing and assembling facilities in Germany, Bulgaria and China. It also has representatives in Brazil, India, Japan and the U.S. Magna is expected to capitalize on ixetic’s significant presence to strengthen its position in these markets.
Magna reported adjusted earnings per share of $1.13 in the third quarter of 2012, up 20.2% from 94 cents in the year-ago quarter. The results topped the Zacks Consensus Estimate by 10 cents. The year-over-year growth in earnings was aided by a decline in share count stemming from repurchase and cancellation of common stocks during the quarter.
Revenues climbed 6.3% year over year to $7.4 billion, exceeding the Zacks Consensus Estimate of $7 billion. The increase was driven by improvement in North American and Rest of World (:ROW) production sales and higher tooling, engineering and other sales, partly offset by decline in sales from European business and complete vehicle assembly.
Magna International, based in Aurora, Canada, is a leading manufacturer and supplier of automotive components. The company designs, develops and manufactures automotive systems, assemblies, modules and components, besides engineering and assembling complete vehicles, primarily for sale to original equipment manufacturers (OEMs) of cars and light trucks. Its primary competitors include Dana Holding Corporation (DAN).
Currently, Magna retains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) Hold rating. We have a long-term Neutral recommendation on the stock.
More From Zacks.com
- Investment & Company Information
- Magna International Inc